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AD Ports Group H1 revenue surges 21pc to $499m

ABU DHABI, October 16, 2021

AD Ports Group, a leading global driver of trade and logistics in the UAE, has recorded a revenue of AED1.83 billion ($499 million) for the first half of the year,  up 21 per cent compared to AED1.52 billion ($413 million) last year, mainly driven by organic growth, diversification into new businesses, new leases and partnerships.
 
Announcing its financial results for the first six months ended June 30, 2021, AD Ports Group said its ebitda rose 8% year-on-year to AED770 million, up from AED714 million last year, with growth across most of the business clusters.
 
Group CEO Captain Mohamed Juma Al Shamsi said: "Our results demonstrate our resilience and the robust growth we have achieved across our business in line with our strategy. We are committed to driving development and diversification to Abu Dhabi and the UAE’s economy."
 
"Our financial performance is underpinned by continued expansions and increased activity, with key partnerships and joint ventures being established that are expected to deliver reliable returns in the future," he stated.
 
According to him, the underlying business witnessed cargo volumes growing from 15 million metric tonnes in H1 last year to 25 million metric tonnes in H1 2021, while container throughput grew from 1.57 million TEUs (twenty-foot equivalent units) to 1.59 million TEUs during the same period.
 
The industrial zones leased about 2.4 million sq. metres of land during H1 2021.
 
"We are focused on growing our customer base across all of our business clusters. A significant part of our business is based on long-term contracts that provide reliable and stable revenues," stated Al Shamsi.
 
From a capital-raising standpoint, AD Ports Group successfully issued a AED3.67 billion ($1 billion rated A+ by Fitch and S&P, respectively) bond dually listed on the London Stock Exchange (LSE) and Abu Dhabi Securities Exchange (ADX) in May, thus achieving the lowest coupon rate for an Abu Dhabi government-related entity at the time.
 
Operational highlights to date in 2021 include the formal inauguration of the expanded container terminal at Fujairah Port in June this year.  
 
Group Chief Financial Officer Martin Aarup said: "Our business model is based on long-term contracts with predictable cash flows, enabling us to plan and invest effectively. Coming out of the peak of the Covid-19 pandemic, we are focusing on delivering solid returns and managing our capital effectively."
 
"Our invested capital increased from AED19.4 billion in 2020 to AED 22.4 billion this year in line with our ongoing expansion programme," he added.
 
The group reported a slight decline in return on invested capital to 5.04%, which was mainly due to increase in invested capital across the portfolio, especially in the ports and industrial zone businesses, which are expected to yield incremental returns going forward.-TradeArabia News Service



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